Osborne tries to blame the EU for "taxes" - it doesn't charge any

Is the Chancellor hoping the public will forget he's responsible for raising taxes?

Over the next few years, we can expect the Conservatives and the right-wing press to take every opportunity to spread myths about the EU in order to win public support for David Cameron's madcap renegotiation strategy. A useful example of this tactic was offered by George Osborne during his interview with the BBC this morning. The Chancellor remarked that "a lot of big British businesses and small businesses came out last week and said actually one of Britain's problems are the taxes and regulations from Europe". 

There are many things that one can blame on the EU but "taxes" are not one of them, for the simple reason that it doesn't levy any. At no point in the history of European integration have national governments ever surrendered control of taxation to Brussels. As the EU's website helpfully explains:

This [taxation] is decided by your national government, not the EU.

Governments set tax rates on company profits, personal income, savings and capital gains (profits made from selling an asset, such as a house). The EU merely keeps an eye on these decisions to see they are fair to the EU as a whole.

This means ensuring national tax rules are consistent with the EU's goals of job creation and do not impede the free flow of goods, services and capital around the EU, or give businesses in one country an unfair advantage over competitors in another.

Moreover, national governments remain in control of raising taxes as EU law requires that no EU decisions on tax matters be taken unless all member countries are in unanimous agreement.

It's true that the introduction of VAT, which replaced the UK's existing consumption tax, the Purchase Tax, was a pre-condition of the UK joining the EEC in 1973, but since Osborne increased this tax from 17.5 per cent to an all-time high of 20 per cent in his 2010 "emergency Budget", that's presumably not what the Chancellor had in mind. 

With the UK in danger of an unprecedented triple-dip recession, it would be surprising if businesses weren't concerned about the tax burden. But unfortunately for Osborne, the only person to blame for that is him. 

Chancellor George Osborne takes part in a tour of the train wheel manufacturers Lucchini UK, at Trafford Park in Manchester earlier today. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Douglas Carswell leaves Ukip to become independent MP

The Clacton MP quits his party but insists he will not rejoin the Conservatives or trigger a by-election. 

Douglas Carswell has long been a Ukip MP in name only. Now he isn't even that. Ukip's sole MP, who defected from the Conservatives in 2014, has announced that he is leaving the party.

Carswell's announcement comes as no great surprise. He has long endured a comically antagonistic relationship with Nigel Farage, who last month demanded his expulsion for the sin of failing to aid his knighthood bid. The Clacton MP's ambition to transform Ukip into a libertarian force, rather than a reactionary one, predictably failed. With the party now often polling in single figures, below the Liberal Democrats, the MP has left a sinking ship (taking £217,000 of opposition funding or "short money" with him). As Carswell acknowledges in his statement, Brexit has deprieved Ukip of its raison d'être.

He writes: "Ukip might not have managed to win many seats in Parliament, but in a way we are the most successful political party in Britain ever. We have achieved what we were established to do – and in doing so we have changed the course of our country's history for the better. Make no mistake; we would not be leaving the EU if it was not for Ukip – and for those remarkable people who founded, supported and sustained our party over that period.

"Our party has prevailed thanks to the heroic efforts of Ukip party members and supporters. You ensured we got a referendum. With your street stalls and leafleting, you helped Vote Leave win the referendum. You should all be given medals for what you helped make happen – and face the future with optimism.

"Like many of you, I switched to Ukip because I desperately wanted us to leave the EU. Now we can be certain that that is going to happen, I have decided that I will be leaving Ukip."

Though Ukip could yet recover if Theresa May disappoints anti-immigration voters, that's not a path that the pro-migration Carswell would wish to pursue. He insists that he has no intention of returning to the Conservatives (and will not trigger a new by-election). "I will simply be the Member of Parliament for Clacton, sitting as an independent."

Carswell's erstwhile Conservative colleagues will no doubt delight in reminding him that he was warned.  

George Eaton is political editor of the New Statesman.